Sri Lanka sells 100 million dollars worth of rupee gilts to foreigners

March 14 (LBO) – Sri Lanka has sold half of the targeted 20 billion rupees worth of bonds to foreign buyers this year, the country’s public debt office said. “Foreign investment in government Treasury bonds has shown a remarkable progress exceeding the total investment which now stands at over 50 per cent of the annual target of Rs 20 billion in the year 2007,” the public debt department said in a statement.

“In response to Government’s invitation to foreign investors to invest up to 5% of the outstanding Treasury bonds, foreign commercial banks have already arranged total investments amounts to Rs 10,770 million by March 14, 2007.”

Overseas clients of Citibank N.A had bought 5,850 million rupees of bonds, Deutsche Bank’ 4,320 million and Hong Kong and Shanghai Banking Corporation Ltd 580 million.

Of this total, 9,140 million was made through the primary market and 1,630 million through the secondary market.

Sri Lanka also accepted bids for 215 million dollars worth dollar bonds at a weighted average yield of 155 basis points above 6-months LIBOR but some investors have received yields as high as 200 basis points.